Circular No. 03/TM-XNK guiding the implementation of Decision No. 864/TTg dated December 30, 1995 on commodity policies and management of import and export activities in 1996.

CIRCULAR

OF THE MINISTRY OF TRADE

Guidelines for implementing Decision No. 864/TTg dated December 30, 1995 of the Prime Minister

on commodity policy and management of import and export activities in 1996

_________________________

On December 30, 1995, the Prime Minister issued Decision No. 864/TTg on commodity policy and management of import and export activities in 1996.

Pursuant to Decree No. 89/CP dated December 15, 1995 of the Government and other relevant legal documents;

The Ministry of Commerce provides guidelines for implementing Decision No. 864/TTg of the Prime Minister as follows:

I. MANAGEMENT OF EXPORT AND IMPORT GOODS:

Management of export and import goods in 1996 shall be carried out according to the provisions set forth from Article 1 to Article 10 of Decision No. 864/TTg. Some points are specifically guided as follows:

1. Regarding rice exports: After reaching consensus with the Ministry of Agriculture and Rural Development and the Vietnam Foodstuff Import-Export Association and obtaining approval from the Prime Minister, the Ministry of Commerce will designate a list of enterprises responsible for directly exporting rice in 1996 as specified in Appendix 1 of this Circular.

The Northern Foodstuff Corporation will participate in exporting rice to repay debts under the current mechanism and exporting rice through trade plans assigned.

Thai Binh Import Company will participate in exporting rice to repay debts under the current mechanism and exporting northern rice through trade plans.

For these two cases, the Ministry of Commerce will provide specific guidance.

2. Regarding imports of consumer goods: The importation of consumer goods referred to in Article 4 of Decision No. 864/TTg is specifically guided in Appendix 2 of this Circular.

3. Importation of automobiles, motorcycles, and automobile parts:

3.1. Automobiles: 20,000 units including both assembled parts and complete vehicles; of which:

a) Passenger cars under 12 seats: 5,000 units (including 3,500 sets of various assembled parts and 1,500 new or used complete vehicles).

b) Other types of automobiles: 15,000 units (including 5,000 sets of various assembled parts and 10,000 new or used complete vehicles).

c) Management of imports of complete vehicles and assembled parts as follows:

c.1) For complete vehicles (new or used):

+ Under 12 seats: Enterprises may import according to regulations applicable to consumer goods, giving priority to enterprises that export encouraged goods. Imports will still be conducted through entrusted enterprises designated.

+ Other types of automobiles: Enterprises may be allocated import plans if their business license includes the industry "transport equipment."

c.2) For assembled parts for automobiles: Plans for imports will only be allocated to enterprises currently engaged in assembly operations. The quantity allocated will be based on production capacity.

For joint ventures with foreign capital:

c 2.1) For export purposes, there is no limit on the quantity imported.

c 2.2) If assembling for domestic consumption, it will follow the quantity generally prescribed by the Government.

c 2.3) If the requested quantity exceeds the amount announced by the Government, each case will be reviewed individually by the Government.

3.2. Motorcycles: 350,000 units, of which:

+ Complete vehicles: 150,000 units (new or used)

+ Assembled parts: 200,000 sets.

Article 1. The importation of two-wheeled motorcycles and spare parts for assembly shall be carried out as follows:

a) For complete vehicles (new or used): enterprises may import according to regulations applicable to consumer goods with priority given to exporting enterprises for items that need encouragement. The importation shall still be conducted through commissioning enterprises that have been designated.

b) For spare parts: Import plans shall be assigned to enterprises currently having assembly facilities that have been inspected and confirmed by relevant authorities. The quantity assigned will be based on production capacity.

For foreign-invested enterprises, the importation of spare parts shall be implemented in accordance with the provisions for importing spare parts for automobile assembly as stipulated in point 3.1, clause c.2 above.

4. To have a basis for assigning import plans early, enterprises with business licenses for trading in appropriate categories who wish to import such items (consumer goods, automobiles and automobile spare parts, two-wheeled motorcycles and two-wheeled motorcycle spare parts, steel, fertilizers, cement) must submit documents to the Ministry of Trade before February 29, 1996.

5. For specialized items mentioned in Article 1 of Appendix 3 of Decision 864/TTg dated December 30, 1995, the export and import shall be carried out according to Decree 89/CP dated December 15, 1995 and Circular guiding the inter-ministerial directive number 01/TTLB dated January 20, 1996 issued by the Ministry of Trade and General Department of Customs.

6. Other items.

6.1. The export and import of timber and wood products shall be carried out according to Circular number 01/TTLB dated December 22, 1995 issued by the Ministry of Agriculture and Rural Development, Ministry of Trade, and General Department of Customs guiding Decision 664/TTg dated October 15, 1995 of the Government.

6.2. Machinery, equipment, materials, and chemicals requiring strict labor safety standards shall be carried out according to Circular number 26/TTLB dated October 12, 1995 issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Trade.

6.3. The importation of engine lubricating oil shall be carried out according to Circular number 48/TTLB dated January 19, 1995 issued by the Ministry of Science, Technology and Environment and the Ministry of Trade.

6.4. The importation of infant formula substitutes shall be carried out according to Circular number 18/TTLB dated November 3, 1994 issued by the Ministry of Health, Ministry of Trade, Ministry of Culture and Information, and the Vietnam Children's Protection and Care Committee.

6.5. The export of coffee shall be carried out according to Notice number 16076 TM/XNK dated December 31, 1994 and related guidance documents of the Ministry of Trade.

II. REGARDING THE ABOLITION OF PROCEDURES FOR ISSUING EXPORT AND IMPORT LICENSES ON A TRIP-BY-TRIP BASIS:
On December 15, 1995, the Government issued Decree No. 89/CP regarding the abolition of procedures for issuing export and import licenses on a trip-by-trip basis. As of February 1, 1996, the procedures for export and import at Vietnamese border gates shall be implemented according to the guidance provided in Circular No. 01/TTLB dated January 20, 1996 issued by the Ministry of Trade and General Department of Customs to guide the implementation of Decree No. 89/CP.

The Ministry of Trade requests all Ministries, agencies equivalent to Ministries, government agencies, People's Committees of provinces and centrally-administered cities, and central bodies of mass organizations to inform enterprises under their management about this matter for implementation.

III. IMPLEMENTATION PROVISIONS:

This Circular takes effect from the date of issuance. Export or import contracts within the 1995 export and import quotas shall continue to be implemented according to Circular No. 07 TM/XNK dated March 15, 1995 and documents amending that Circular until March 31, 1996.

This Circular takes effect from the date of issuance. Export or import contracts within the 1995 export-import targets shall continue to be implemented in accordance with Circular 07 TM/XNK dated March 15, 1995, and amendments to that Circular until March 31, 1996.